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Weekly Report - 12 February 2026 (WR-26-06)
BRAZIL: Debates over public sector salary perks fuel tensions
The question of how much to pay public sector staff has emerged as another potential point of tension between Brazil’s political and judicial institutions. On 5 February supreme court (STF) justice Flávio Dino ordered the suspension of benefits and allowances for public sector employees which could raise their incomes above constitutionally determined salary caps. This court order came just days after congress passed a fiscal reform to increase the salaries of congressional staffers. This bill could cause a headache for President Luiz Inácio Lula da Silva who could be under pressure to crack down on the long-running fiscal concern over ‘super-salaries’, but if he were to veto the bill to increase salaries, it could strain his relationship with the legislative branch.
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